An Ordinance Amending Chapter V — Municipal Enterprise Charges and Fees of the Municipal Tax Ordinance No. 01-2016 Otherwise Known as the "2016 Municipal Revenue Code of San Jose de Buenavista, Antique" by Inserting Article A — Municipal Enterprise: Section 1-H, I, J, K, L and Section 2-A, B and E and Article E — Charges on Parking/Terminal Fee: Section 1

May 10, 2007 BIR RULING [DA-293-07] 24 (D) (1), 27 (D) (5), 196; DA-145-2000 Sps. Simplicio and Nieva Fortaleza 91 San Gabriel St., San Antonio Valley 12 San Isidro, Paraaque City Gentlemen : This refers to your letter dated February 9, 2006 requesting in effect, for exemption from the payment of capital gains tax relative to the swapping of real properties effected through a Deed of Exchange made without monetary consideration. Your representations and documents submitted show that: 1. In 1981, you acquired a property at San Antonio Valley 12, Brgy. San Isidro, Paraaque City, described as Lot 10, Block 5 under TCT No. 33996 which is currently your place of residence; 2. Sometime in 1986, you were offered by Spouses Gabriel Manansala and Gloria Manansala (now deceased) to buy the adjoining lot, a 180 sq.m. property described as Lot 9, Block 5 on installment basis. The Manansalas were authorized by the owners Sps. Renato and Zita Arias to sell the property via a Special Power of Attorney but nonetheless, the latter executed a Conditional Deed of Sale; 3. After full payment in 1988, you decided to have the title transferred in your name, since the title was still in the name of the developer, San Antonio Development Corporation. However, you were surprised that the subject property was already titled in the name of the Superior of the Pontifical Institute for Foreign Missions, Phils., Inc. (PIME); 4. Sps. Manansala committed an error in executing the Deed of Sale in 1987 by transferring Lot 9, Block 5 in the name of PIME, when in fact the property being purchased by PIME at that time was Lot 8, Block 5 (likewise a 180 sq.m. parcel of land), which the latter now occupies, while you are presently occupying the nearby Lot 9, Block 5; and 5. PIME and Sps. Fortaleza voluntarily agreed to correct the error committed and put everything in order by exchanging their respective properties without monetary consideration In reply, please be informed that since the exchange transaction is without any monetary consideration, and considering further that the execution of the Deed of Exchange was merely for the purpose of correcting the mistake above-mentioned, the exchange of realties by and between the aforestated parties is not subject to the capital gains tax imposed under Section 24 (D) (1) and 27 (D) (5) of the Tax Code of 1997. IDETCA Furthermore, the swapping of real properties is not likewise subject to the documentary stamp tax imposed under Section 196 of the Tax Code of 1997. However, the notarial acknowledgment of said Deed of Exchange is subject to the documentary stamp tax of P15.00, pursuant to Section 188 of the Tax Code of 1997. (BIR Ruling No. DA-145-2000 dated March 10, 2000) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered as null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service